The two state governments agreed to work together to develop
emissions trading schemes, clean energy technology and conduct
economic assessments of climate change.

The leaders, from different sides of the political divide,
signed a memorandum of understanding for the two governments after
a meeting in Los Angeles.

Mr Bracks said state governments were now leaders in driving
climate change solutions.

"Governor Schwarzenegger has been a leader in the United States
in addressing global warming, taking such initiatives as the global
warming law, which imposes the country's first mandatory statewide
cap on greenhouse gas emissions," Mr Bracks said.

He said the agreement would enable Victoria and California to
share expertise, and maybe pave the way for a wider agreement.

He also said Victoria and California faced similar climate
change threats.

Mr Schwarzenegger and Mr Bracks spoke of the threat of droughts
and bushfires. "I think there's a lot of common things that we
share," Mr Schwarzenegger said. "You see right now the lack of
water, the snow melting much faster."

The agreement between the two states, Mr Bracks said, showed
governments could tackle climate change while still fostering
economic growth.

"California is one of the world's major economic powerhouses
and, like Victoria, understands that it's not a matter of choosing
between climate change and economic development," he said.

The Australian director of the Climate Group, Rupert Posner,
said it was important that governments worked together on climate
change.

Mr Bracks' visit to California was the first leg of a trip that
will take in a medical conference in Boston and meetings in New
York.

Deputy Opposition Leader Louise Asher said the Premier should be
focused on dealing with Victoria's water problems.

"What the Premier needs to be doing is dealing with Victoria's
water crisis and not cavorting around with the stars," she
said.